On digitalization of the insurance sector of the Republic of Kazakhstan
The Central Communications Service under the President of the Republic of Kazakhstan hosted a briefing by Deputy Chairman of the Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan Maria Hadzhieva on the topic of digitalization of the insurance sector of the Republic of Kazakhstan.
During her speech, Maria Khadzhieva noted that in recent years Kazakhstan has made significant progress in digitalization of the insurance industry. To date, the digitalization of the insurance sector is developing in 3 directions: Insurtech, RegTech and SupTech. If RegTech and SupTech relate to the digitalization of supervision and regulation, then Insurtech is aimed at digitalizing the relationship between the client and the insurer.
An important element is the Unified Insurance Database (hereinafter referred to as the UID), which is integrated with a variety of government databases. This allows you to remotely obtain the necessary information both for the conclusion of the contract and for making payments to the client. UID is an information technology platform not only for online insurance, but also for collecting data on the entire insurance sector.
"The availability of high-quality statistics allows you to create new insurance products based on the interests of the client, to develop cross-sales. For example, for compulsory car insurance, the calculation of the insurance premium is automated in the UID. The accumulated statistics on the driver's accident rate are taken into account, the more accidents caused by the driver, the more he pays for insurance," said Maria Hadzhieva.
An important step in the development of digitalization is the introduction of
January 1, 2019 online conclusion of insurance contracts.
"Today, 100% of all contracts for mandatory types of insurance are concluded in electronic form. The population and businesses freely purchase insurance products without visiting the insurer's office," Maria Khadzhieva stressed.
To provide the population with a full cycle of insurance services, the Law of July 12, 2022 provides for the introduction of online settlement of insurance payments. The entire process of providing insurance services from the moment of signing the contract to receiving the insurance payment from 2024 will be electronic.
"Citizens will have the opportunity to send an application for payment to the insurance company, attach the necessary documents via the website or mobile application and receive payment without visiting the office. There are insurance organizations that have already implemented such services and accept applications for payment online," the Deputy Chairman of the Agency said.
A significant optimization of the process of receiving payments for the population is the introduction from 01.01.2024 of a simplified procedure for receiving insurance payments for compulsory motor insurance (Euro Protocol).
In order to establish an adequate cost of insurance for car owners, flexible tariffs will be established from 2024. Thus, when calculating the insurance premium for compulsory auto insurance, the accident rate of each region of the country will be analyzed.
"Flexible pricing will reduce the cost of insurance in regions with low accident rates. According to preliminary calculations of tariffs, premiums are expected to decrease in 11 regions, in 2 regions the amount of the insurance premium will remain unchanged," said Maria Hadzhieva.
In order to protect consumer rights and monitor the level of solvency of insurers, the Agency pays special attention to the development of digitalization of supervisory tools.
Increasing the level of digitalization as an effective competition tool will further improve the quality of insurance products and services provided. New technological solutions will be a key driver for increasing the financial and geographical availability of insurance services for the population and businesses.
Agency's External Communications Division
+7 (727) 237-10-90, press@finreg.kz